Wheelock Properties (Singapore) is acquiring five sites in Fuyang City, Hangzhou for S$279 million (1.44 billion yuan).
It is planning to develop about 1,900 residential units on the sites at a total development cost of about S$750 million.
Wheelock, through its subsidiary, won the bid for the sites, which was put up for auction by Fuyang Land Bureau.
With an area of 3.2 million sq ft, the sites have a total gross floor area (GFA) of approximately 3.9 million sq ft.
The company plans to build 588 townhouses and 1,260 apartments, which range from 1,100 to 1,900 sq ft in size.
The sites are located within a middle-class market, where properties enjoy strong demand, said David Lawrence, CEO of Wheelock. “It’s not a speculators’ market.”
China’s housing market is going through a slight pause, said Mr. Lawrence. “But that gives us an opportunity, because financing is a bit difficult for developers at the moment in China to buy good sites.”
“In Singapore, there’s so much financing available at the moment that developers are paying very high prices for sites.”
The proposed acquisition will likely be completed in February 2011.
Mr. Lawrence said that the company will explore opportunities in China as they come along, adding that Wheelock also seeks to expand further in Singapore but there are now too many entrants and too much financial liquidity in the country.